Thai power generator stocks edged higher at the opening on Tuesday following easing concerns of the government cutting tariff bills for electricity that was thought to impact profitability of Thai power generators.
The increase in share prices of power generator stocks could be linked to a keynote speech delivered by former Prime Minister Thaksin Shinawatra during a dinner event titled “Chat with Tony: Bull Rally of Thai Capital Market,” hosted by ‘Kaohoon Turakij’ on Monday.
Thaksin stated in the Dinner Talk that the cost cutting would mostly fall into the government’s side, especially the transmission price that is collected by Thailand’s energy arm, PTT Public Company Limited (SET: PTT). Meanwhile, the former Thai PM noted that low output with higher cost power plants should be terminated to reduce the cost.
At the open on Tuesday, the share price of B.Grimm Power Public Company Limited (SET: BGRIM) rose 4.11%. Meanwhile, Gulf Energy Development Public Company Limited (SET: GULF) gained 2.58%, Ratch Group Public Company Limited (SET: RATCH) increased 1.78%, Global Power Synergy Public Company Limited (SET: GPSC) jumped 6%, Electricity Generating Public Company Limited (SET: EGCO) edged 1.8% higher and Banpu Power Public Company Limited (SET: BPP) increased 1%.
However, all power generator stocks pared gains as the session progressed due to the weight of selloff in Thailand’s largest capitalization stock, Delta Electronics (Thailand) Public Company Limited (SET: DELTA), that was reported a big-lot transaction at the amount of 33,381,600 shares, totaling THB 4.47 billion, at an average price of THB 134.00 per share. The selling price was lower than the actual trading price in the market that showed the lowest price of THB 137.00 per share.
